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Enterprise Resource Planning, 1 s t Edition by Mary Sumner Chapter 3: Planning, Design, and
Enterprise Resource Planning, 1 s t Edition by Mary Sumner Chapter 3: Planning, Design, and

Enterprise Resource Planning, 1 st Edition by Mary Sumner

Resource Planning, 1 s t Edition by Mary Sumner Chapter 3: Planning, Design, and Implementation of

Chapter 3:

Planning, Design, and Implementation of Enterprise Resource Planning Systems

and Implementation of Enterprise Resource Planning Systems © Prentice Hall, 2005: Enterprise Resource Planning, 1 s

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Objective • Understand the information systems development process for enterprise systems, including planning, design,
Objective • Understand the information systems development process for enterprise systems, including planning, design,

Objective

Objective • Understand the information systems development process for enterprise systems, including planning, design,

• Understand the information systems development process for enterprise systems, including planning, design, and implementation

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Traditional Systems Development Life Cycle • Detailed analysis of system using tools and techniques to
Traditional Systems Development Life Cycle • Detailed analysis of system using tools and techniques to

Traditional Systems Development Life Cycle

Traditional Systems Development Life Cycle • Detailed analysis of system using tools and techniques to determine

• Detailed analysis of system using tools and techniques to determine problem areas

– Process models

– Data models

• Phases

– Problem definition

– Feasibility study

– Systems analysis

– Systems design

– Detailed design

– Implementation

– Maintenance

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Traditional Systems Development Life Cycle, continued • Automating current system is counter- productive – Inherit
Traditional Systems Development Life Cycle, continued • Automating current system is counter- productive – Inherit

Traditional Systems Development Life Cycle, continued

Traditional Systems Development Life Cycle, continued • Automating current system is counter- productive – Inherit

• Automating current system is counter- productive

– Inherit old problems and flaws

• Provides opportunity to re-engineer current system

• Create logical database design before details are refined

• Takes too much time

• Uses a great deal of resources

• Expensive

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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New Approaches • Prototyping – Models shown to end-users for feedback, guidance – Not necessarily
New Approaches • Prototyping – Models shown to end-users for feedback, guidance – Not necessarily

New Approaches

New Approaches • Prototyping – Models shown to end-users for feedback, guidance – Not necessarily faster

• Prototyping

– Models shown to end-users for feedback, guidance

– Not necessarily faster

• End-user development

– End-users create information systems using spreadsheets and databases

– Not effective for large-scale development

• Software packages

– Economies of scale in development, enhancement, maintenance

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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ERP Systems Design Process • Phases – Planning – Requirements analysis – Design – Detailed
ERP Systems Design Process • Phases – Planning – Requirements analysis – Design – Detailed

ERP Systems Design Process

ERP Systems Design Process • Phases – Planning – Requirements analysis – Design – Detailed design

Phases

– Planning

– Requirements analysis

– Design

– Detailed design

– Implementation

– Maintenance

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Planning and Requirements Phases – Planning • Needs assessment • Business justification – Tangible and
Planning and Requirements Phases – Planning • Needs assessment • Business justification – Tangible and

Planning and Requirements Phases

Planning and Requirements Phases – Planning • Needs assessment • Business justification – Tangible and intangible

– Planning

• Needs assessment

• Business justification

– Tangible and intangible benefits

– Requirements analysis

• Identify business processes to be supported

• “Best practices” offered by vendors

– Models of supported functions

• Checklist of activities and factors

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Design Phase • Re-engineering business processes to fit software – Traditional SDLC defines new business
Design Phase • Re-engineering business processes to fit software – Traditional SDLC defines new business

Design Phase

Design Phase • Re-engineering business processes to fit software – Traditional SDLC defines new business

• Re-engineering business processes to fit software

– Traditional SDLC defines new business requirements and implements conforming software

• Re-engineering versus customization

– Re-engineering can disrupt organization

• Changes in workflow, procedures

– Customizing

• Upgrading can be difficult

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Alternative Designs • “Vanilla” – Easy to implement • Follow vendor prescribed methodology • Employ
Alternative Designs • “Vanilla” – Easy to implement • Follow vendor prescribed methodology • Employ

Alternative Designs

Alternative Designs • “Vanilla” – Easy to implement • Follow vendor prescribed methodology • Employ

• “Vanilla”

– Easy to implement

• Follow vendor prescribed methodology

• Employ consultants with specialized vendor expertise

– Usually on time and on budget implementations

• Customized

– Time and costs increase

– Not easily integrated into new version

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Alternative Designs, continued • Maintain legacy systems and add ERP modules – Support specific functions
Alternative Designs, continued • Maintain legacy systems and add ERP modules – Support specific functions

Alternative Designs, continued

Alternative Designs, continued • Maintain legacy systems and add ERP modules – Support specific functions –

• Maintain legacy systems and add ERP modules

– Support specific functions

– Cost-effective

– Organization doesn’t get full benefit of ERP

– Less disruptive

– Lacks integration

• Outsourcing

– External vendor operates

• ASPs provide on time-sharing basis

• Depends on reliability and stability of vendor

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Detailed Design Phase • Team selects the models, processes, and information to be supported –
Detailed Design Phase • Team selects the models, processes, and information to be supported –

Detailed Design Phase

Detailed Design Phase • Team selects the models, processes, and information to be supported – “Best

• Team selects the models, processes, and information to be supported

– “Best practices” methodology provides models

• Select applicable business processes

• Discard inapplicable processes

• Those processes that do not match the system will serve as foundation for re-engineering

• Identify any areas not covered as candidates for customization

• Interactive prototyping

• Extensive user involvement

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3
© Prentice Hall, 2005: Enterprise Resource Planning, 1 s t Edition by Mary Sumner 3

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Implementation Phase • Implementation – Address configuration issues • Data ownership and management • Security
Implementation Phase • Implementation – Address configuration issues • Data ownership and management • Security

Implementation Phase

Implementation Phase • Implementation – Address configuration issues • Data ownership and management • Security

Implementation

– Address configuration issues

• Data ownership and management

• Security issues

– Migrate data

• Ensure accuracy

– Build interfaces

– Documentation review

– User training

– Reporting

– Testing

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Implementation Strategies • Big bang – Cutover approach • Rapid • Requires many resources •
Implementation Strategies • Big bang – Cutover approach • Rapid • Requires many resources •

Implementation Strategies

Implementation Strategies • Big bang – Cutover approach • Rapid • Requires many resources • Small

• Big bang

– Cutover approach

• Rapid

• Requires many resources

• Small firms can employ

• Mini big bang

– Partial vendor implementation

• Phased by module

– Module-by-module

– Good for large projects

• Phased by site

– Location-based implementation

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Case: Response to Request for Proposal for an ERP System • Wingate Electric – Mid-sized
Case: Response to Request for Proposal for an ERP System • Wingate Electric – Mid-sized

Case: Response to Request for Proposal for an ERP System

Case: Response to Request for Proposal for an ERP System • Wingate Electric – Mid-sized manufacturer

• Wingate Electric

– Mid-sized manufacturer of electric motors

– Owned by Dick, CEO, and Steve, COO

• MIS system

– Supports major accounting and financial functions

• Sales order processing, inventory control, accounts payable, accounts receivable, general ledger

– Multiple legacy systems

• Redundant data

• Inconsistent data

• Queries difficult

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Case: Response to Request for Proposal for an ERP System, continued • Competitors adopting ERP
Case: Response to Request for Proposal for an ERP System, continued • Competitors adopting ERP

Case: Response to Request for Proposal for an ERP System, continued

to Request for Proposal for an ERP System, continued • Competitors adopting ERP systems – Integrating

• Competitors adopting ERP systems

– Integrating financial and manufacturing

– Web-based front ends

• Order processing, tracking, follow-up

• RFP for ERP system

– Initially to support accounting, financials

– Additional support for production, manufacturing

– Eventual support for sales and marketing, HR, CRM, eBusiness

– $1,000,000 budget for system

– Determination made by five executives, representing different user groups

• 10 scored criteria

• Vendor presentations, supplemental materials

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Summary • Traditional SDLC has been modified by the use of prototyping, end-user developments, and
Summary • Traditional SDLC has been modified by the use of prototyping, end-user developments, and

Summary

Summary • Traditional SDLC has been modified by the use of prototyping, end-user developments, and software

• Traditional SDLC has been modified by the use of prototyping, end-user developments, and software packages

• ERP systems design process consists of six phases: planning, requirements analysis, design, detailed design, implementation, and maintenance

– The design phase considers the use of traditional methods, re-engineering, and customization, as well as outsourcing

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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